CDN77 Raises Large Funding Round: CDN Product Will Remain Core, and Will Expand Product Portfolio

CDN77 has raised a large funding round, with PE firm CVC taking a significant minority stake and valuing the company at around $1.9 billion. I advised CVC on the deal, so I can’t disclose additional numbers, and CDN77 isn’t disclosing the total investment. CDN77’s founder and CEO, Zdenek Cendra, who founded the business in 2011, retains a majority stake and will continue as CEO and the senior team, most of whom have been at the company since the early years, will remain.

CDN remains the heart of CDN77, and the company plans to keep growing the core product and the network behind it. The company will use the funding to accelerate what it has built in adjacent services (offered under both the CDN77 and DataPacket brands), so its existing clients can get more from one partner, including storage, edge compute, Kubernetes as a service, bare metal servers, dedicated CPU/GPU infrastructure for AI use cases, and AI inferencing. All of these services are already live and available to clients, with the next step being to roll them out at a much wider scale.

CDN77 said its whole network has been built from its own cash flow so far, and CVC’s investment won’t change how it operates, giving it the flexibility to say yes with more confidence when the right opportunity comes up. CDN77 builds and runs its own network, hardware platforms and software stack, and serves some of the largest video, gaming, software and media platforms in the world. Over the years, the company has grown into a global edge network of more than 230 locations worldwide and 330 Tbps of capacity. Earlier this year, CDN77 disclosed $63.9 million in Q1 revenue.

PE firm CVC has seven complementary strategies across private equity, secondaries, credit and infrastructure, with a global network of 30 local offices and €212 billion of assets under management.